Question: I do not know how to even approach this question. Please help me solve this question. (P8) In the United Kingdom, the following tax rates
I do not know how to even approach this question. Please help me solve this question.
(P8) In the United Kingdom, the following tax rates have been implemented: Band Taxable Income Tax Rate Personal Allowance Basic rate Higher rate Additional rate Up to 11,500 11,501 to 45,000 45,001 to 150,000 Over 150,000 0% 20% 40% 45% Someone who earns 60,000 would have a marginal tax rate of 20 percent and an average tax rate of 21.16 percent You are earning 40,000 (pre-tax) in the banking sector working 30 hours in a 40-hour week. You have been offered a promotion where you would be making 80,000, but for a full 40-hour week (pre-tax). Working part time helped you avoid paying for childcare. Accepting the promotion would cost 1,500/month for childcare. How much more will you be making marginally? Should you take ine offer? P8) In the United Kingdom, the following tax rates have been implemented: Band Taxable Income Tax Rate Personal Allowance Up to 11,500 0% Basic rate 11,501 to 45,000 20% Higher rate 45,001 to 150,000 40% Additional rate Over 150,000 45% Someone who earns 60,000 would have a marginal tax rate of 20 percent and an average tax rate of 21.16 percent You are earning 40,000 (pre-tax) in the banking sector working 30 hours in a 40-hour week. You have been offered a promotion where you would be making 80,000, but for a full 40-hour week (pre-tax). Working part time helped you avoid paying for childcare. Accepting the promotion would cost 1,500/month for childcare. How much more will you be making marginally? Should you take the offer
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
